Definition of 'velocity'?

[Taylor Green]

Hi,

I have just been reading thru old posts and I have tried finding out what makes a good market for rehabbing and flipping. Is it the same criteria for a good rental market?

Anyways, I have seen a couple posts mentioning 'the velocity of the market' is what makes a good house flipping location. I was hoping somebody could explain to me what velocity means in real estate terms and also, hopefully, what makes a good market for flips? Thanks.

[Jon Holdman]

Not totally sure what the poster meant by that term in this context. Do you have a link?

I suspect they're talking about the rate of sales. For flipping, you want a market where retail sales are occurring quickly so you are able sell your end product. OTOH, you don't want a super hot market where everything get snatched up quickly. That makes it hard to find your starting houses.